[TOKYO] Tokyo shares rose on Friday as the US and China steadily moved closer to easing their long-standing trade frictions, encouraging investors about the future for the global economy.
The headline Nikkei index added 1.05 per cent or 228.68 points to 21,988.29 for a weekly rise of 3.72 per cent, while the broader Topix index rose 0.93 per cent or 14.77 points to 1,609.87 for a weekly gain of 4.73 per cent.
It was the Nikkei’s ninth straight day of gains, the longest winning streak enjoyed by the index in two years, as global investors cheer moves by both Washington and Beijing to make amends after a year-long trade war.
Ahead of a fresh round of talks next month, US President Donald Trump hinted that he might view an “interim” deal with China as a possibility, although he would prefer a complete pact.
Market voices on:
“The market was strong from the start with President Trump hinting that he might consider a provisional agreement in the trade talks. It boosted hopes of progress in the US-China trade negotiations,” Okasan Online said in a note.
“In the forex market, the dollar swung higher to the 108-yen level, encouraging investors who sent the Nikkei toward the 22,000 level,” it said.
The US currency stood at 108.03 yen, slightly higher from 107.98 yen in New York.
A huge stimulus programme from the European Central Bank also lifted the market, analysts said.
Profit-taking ahead of a three-day weekend capped further gains, Okasan added.
Among major gainers, Toyota rose 0.78 per cent to 7,396 yen. SoftBank Group jumped 3.20 per cent to 4,837 yen.
Industrial robot producer Fanuc added 0.32 per cent to 20,340 yen while Uniqlo-operator Fast Retailing rose 0.62 per cent to 64,610 yen.
Nissan added 0.34 per cent to 713.5 yen, despite facing a preliminary investigation in the United States regarding the emergency braking system of an SUV model.